Beat The Vat Interest Tomorrow
Turk182
them tomorrow, you will beat the VAT increase which started today.
One of the companies was PC World. However they try to dress it up,
is there anyway that they can claim, that you are paying a reduced
rate of VAT by buying from them? They in why tried to explain or
qualify their statement.
Turk182
Usenet Nutter
I suppose what matters is the price before the increase and the price
afterwards ..If they are the same, for most folk it doesn't matter
what the VAT component is .....they could have reduced the pre VAT
element and added on the 17.5% to make the price the same ... but
that's not what they appear to be saying is it ....can they not just
keep the prices the same so long as HMRC gets the 17.5%
Turk182
OK. So let's say the price is £20 and on the 2nd of Jan you buy the
item. HMRC get their 17.5% so you have not beaten the VAT increase.
That could only happen if you continued to pay the 15% rate. Even if
they mean 'you have beaten the VAT interest by paying less on the cost
of the item, then the term is not honest.
If you really had 'beaten the VAT increase', a company buying a
product would only be able to claim back 15% VAT on a purchase from
this store instead of the full amount.
I suppose they can get away with it because they are vague.
Turk182
johannes
Quite right, the statement that they will beat he VAT increase is
meaningless; they will pay the 17.5% VAT to H.M.S. Customs anyway, or
14.89362% of ticket price, whatever that is. Just insist that you
pay the ticket price and don't accept a different till price.
John Turner
"Turk182" wrote
They probably increased their prices by 2% in December like many of the
supermarkets, which gave them a bonus at the busiest time of the year for
shopping, whilst later claiming they were absorbing the increase in VAT.
John.
R. Mark Clayton
"Turk182" <digital...@aol.com> wrote in message
news:939e1588-bd8b-40f0...@a15g2000yqm.googlegroups.com...
There are many promotions that claim to "beat the VAT" or "buy this month
and we pay the VAT".
What they really mean is that the inclusive price now includes VAT at the
17.5% rate (rather than 15%) or that they are now selling a an inclusive
price that was previously the ex VAT price respectively (~= -2% and -14.9%).
Dave S.
> OK. So let's say the price is �20 and on the 2nd of Jan you buy the
> item. HMRC get their 17.5% so you have not beaten the VAT increase.
> That could only happen if you continued to pay the 15% rate. Even if
> they mean 'you have beaten the VAT interest by paying less on the cost
> of the item, then the term is not honest.
> If you really had 'beaten the VAT increase', a company buying a
> product would only be able to claim back 15% VAT on a purchase from
> this store instead of the full amount.
> I suppose they can get away with it because they are vague.
> Turk182
No. you muppet.
�20 including 15% VAT is �17.39 net of VAT
�17.39 plus 17.5% is �20.43
Therefore, you have saved 43p by way of the company absorbing the extra 2.5%
VAT
Seemple
Dave S.
johannes
Another way of looking at it. Perhaps the item would normally sell for �19.57
including 15% VAT, but shops raised the price to �20 in December anticipating
the Christmas demand, hence have already increased their ticket prices by 2.2%
in advance of the VAT increase.
Bob Ferguson
"Dave S." <kil...@netscape.net> wrote in message
news:hhoa9g$so8$1...@speranza.aioe.org...
>
> "Turk182" <digital...@aol.com> wrote in message
> news:8546bfe6-f954-4651...@34g2000yqp.googlegroups.com...
>
>
>> OK. So let's say the price is �20 and on the 2nd of Jan you buy the
>> item. HMRC get their 17.5% so you have not beaten the VAT increase.
>> That could only happen if you continued to pay the 15% rate. Even if
>> they mean 'you have beaten the VAT interest by paying less on the cost
>> of the item, then the term is not honest.
>
>> If you really had 'beaten the VAT increase', a company buying a
>> product would only be able to claim back 15% VAT on a purchase from
>> this store instead of the full amount.
>
>> I suppose they can get away with it because they are vague.
>
>> Turk182
>
> No. you muppet.
>
> �20 including 15% VAT is �17.39 net of VAT
> �17.39 plus 17.5% is �20.43
>
Bad example. VAT is always rounded down so.
�17.39 plus 15% VAT is �20.
�17.39 plus 17.5% VAT is also �20 (rounded)
Norman Wells
Don't be silly. VAT may be rounded down but only to the nearest penny not
to the nearest pound.
Bob Ferguson
"Norman Wells" <cm...@dibblers-pies.co.am> wrote in message
news:nZn0n.43420$Gj2....@newsfe01.ams2...
It's my first day back at work and I'm as bored as ever.
John Turner
"Turk182" wrote
> If you really had 'beaten the VAT increase', a company buying a
> product would only be able to claim back 15% VAT on a purchase from
> this store instead of the full amount.
The amount of VAT reclaimed by a store is that shown on the invoice from
their supplier. If the invoice was dated prior to 31/12/09 VAT would be
charged at 15%, after 1/1/10 VAT would be charged at 17�%.
VAT is not rounded, it has to be charged at the exact percentage. Often the
pre-VAT price is adjusted to give an attractive price point after VAT is
added.
After 1/1/10 the retailer has to charge/collect VAT at the rate set by HMG.
If they claim they are not passing on the increases VAT rate, what they are
really saying is they are reducing the pre-VAT price to absorb the higher
rate of VAT.
John.